Arkan Palm begins execution in ‘205’ complex in Sheikh Zayed City, recieves EGP 1.5 bn long-term loan
Arkan Palm for Real Estate Investment secured EGP 1.5 bn long-term loan from a banking alliance to fund part from the investment coast of the company’s 1st phase of the ‘205’ real estate project in Sheikh Zayed City.
The banking alliance is led by the Export Development Bank of Egypt (EBE) as the main arranger, general coordinator and guarantee, and includes four other banks: the Housing and Development Bank (HDB), the United Bank of Egypt, the Suez Canal Bank, MID Bank.
This came as the real estate company aims to accelerate the construction process of the project.
The ‘205’ real estate project spans over 205 feddans in Sheikh Zayed City and is being constructed in a partnership between the New Urban Communities Authorities (NUCA) and Arkan Palm for Real Estate Investment; as it will be in the heart of West Cairo and Downtown of Sheikh Zayed City.
The Project is designed to include commercial, administrative, entertainment, medical, educational and residential services with the highest sustainability measurements, and has a significant location in Sheikh Zayed City of one kilometer away from Axis road and 1.2 kilometers from Al Bustan Street, which includes high end brands like Arkan and American Plaza.
EBE possesses the largest share of the loan
As mentioned in the contract signed between Arkan Palm and the banking alliance, EBE contributes with EGP 650 million from the total amount of the loan offered, followed by HDB which contributes with EGP 300 million, then the United Bank with EGP 250 million, while the Suez Canal Bank and MID Bank contribute with EGP 150 million each.
For his part, Mamdouh Badr El-Din, the Chairman of the Badr El Din Real Estate Developments said to “Osoul Misr Magazine” that the cooperation between big banks and financial institutions in Egypt to construct ‘205’ complex project reflects its significance, adding that the project will leave an unique imprint in Sheikh Zayed City and will be a service hub in West Cairo district on the economic, commercial, touristic, entertainment, educational and medical scales.
‘205’ complex will make shift in Sheikh Zayed City, Provides 57000 job vacancies Badr El Din noted that the project is expected to provide 57000 job vacancies.
He added that Arkan Palm had got the ministerial decree which permits working at the project, and it was very keen to cooperate with senior engineering consulting offices, starting from the setting Gensler firm – which ranked the 1st globally - the project’s master plan, reaching to signing a contract with Savills, the global real estate services provider, in order to manage the project after being constructed.
5 engineering consulting offices to set ‘205’ Complex layouts
Badr El Din had also elaborated that the real estate company has been contracted with five senior engineering consulting offices until now, with a consulting office to set the layout for each district in the project in order to guarantee execution according to the highest levels of the global standards, referring that the company has cooperated with Dar Al-Handasah, Raef Fahmi, Rami El Dahan along with Shaker Consultancy Group.
Arkan Palm had also signed a partnership with Crown Plaza Hotel to present hotel services in the project’s residential area which called “Canal Walk Island”.
The ‘205’ Complex also includes an international hospital, clinics, a home care, a School and three hotels. It is located in a distinctive area next to the Nile University (NU), and overlooks the 26th July Axis.
It will include a 2-kilometer artificial river that flows around the residential area to separate it from the business area, as the project is very keen on executing the very small details which guarantee sustainability and quality life to the customers.
Arkan Palm is an extension to Badr El Din Group, one of the leading companies in the construction and real estate development field.
Badr El Din Group has previous successful projects built in significant areas; like: Arkan mall and Al Karma 1, 2, 3 and 4 residential compounds. This followed by other successful projects like Arkan extension project,” Mazar” mall and “Kayan” residential compound.
The company is a leader in developing urban communities in Sheikh Zayed and 6th of October cities, and it built over 5000 residential units, along managing and operating more than 250 million meters of commercial and administrative areas.
The bank financing contract was attended by Mervat Sultan, Chairperson of EBE, Dr. Ahmed Galal, Deputy Chairman of EBE, Hassan Ghanem, Chairperson of HDB, Ashraf El Kady Chairperson of the United Bank of Egypt, Hussien Refaay, Chairperson and Managing Director of the Suez Canal Bank, Nevine Kashmiri Assistant Managing Director of Corporate Finance and Marketing of the United Bank of Egypt and Eman Abo Zeid, Head of the bank credit and syndicated loans sector at MID Bank, along with Eng. Mamdouh Badr El Din, Founder and President of Badr El Din Group and Amr Badreldin Chairperson of Arkan Palm.
EBE Chairperson: Badr El Din Group represents distinctive architectural patterns For her part, Mervat Sultan, Chairperson of EBE expressed her gratitude to all the banks participating in financing ‘205’ real estate project, saying that it is not the first alliance between the five banks and will not be the last in the field of lending real estate companies.
Sultan said that she is proud of the architecture patterns represented by Arkan Palm, adding that it is distinctive as the most significant international architecture patterns that are needed for modern Egypt.
Meanwhile, Dr. Ahmed Galal, Thanked all the members of the banking alliance, praising on the work effort exerted by Arkan Palm in the last 20 years to Stimulate the urban movement in Egypt generally and in Sheikh Zayed City specially.
HDB Chairperson: We are always keen on supporting mega projects of added value
Hassan Ghanem, Chairperson of HDB, asserted the bank keenness on offering all the finances needed to mega projects, which contribute positively in creating added value to the society and achieving sustainable development, adding that the banking sector is playing a vital role in supporting the national economy in all fields.
Meanwhile, Hussien Refaay, Chairperson and Managing Director of the Suez Canal Bank, said that banking alliance agreed on financing the project because it is one of the real estate development projects which is being implemented Badr El Din Group and Arkan Palm, the leading corporate in this field.